WallStSmart

American Airlines Group (AAL)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 8% more annual revenue ($59.07B vs $54.63B). AAL leads profitability with a 20.0% profit margin vs 5.7%. AAL appears more attractively valued with a PEG of 0.09. UAL earns a higher WallStSmart Score of 60/100 (C).

AAL

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.59

UAL

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALSignificantly Overvalued (-1076.2%)

Margin of Safety

-1076.2%

Fair Value

$1.22

Current Price

$10.43

$9.21 premium

UndervaluedFair: $1.22Overvalued
UALUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$201.55

Current Price

$89.95

$111.60 discount

UndervaluedFair: $201.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL2 strengths · Avg: 9.5/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

Profit MarginProfitability
20.0%9/10

Keeps 20 of every $100 in revenue as profit

UAL3 strengths · Avg: 9.0/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

AAL4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

UAL4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

PEG RatioValuation
5.952/10

Expensive relative to growth rate

Free Cash FlowQuality
$-604.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on PEG Ratio, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 3.6%. PEG of 0.09 suggests the stock is reasonably priced for its growth.

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, Return on Equity, Price/Book.

Bear Case : AAL

The primary concerns for AAL are Revenue Growth, Return on Equity, Operating Margin. A P/E of 60.3x leaves little room for execution misses.

Bear Case : UAL

The primary concerns for UAL are Revenue Growth, Profit Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

UAL carries more volatility with a beta of 1.25 — expect wider price swings.

UAL is growing revenue faster at 4.8% — sustainability is the question.

UAL generates stronger free cash flow (-604M), providing more financial flexibility.

Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UAL scores higher overall (60/100 vs 44/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Airlines Group

INDUSTRIALS · AIRLINES · USA

American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas.

United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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